<article>Asset management firm <a class="tinymce-colortext" style="color: #000080;" href="https://www.dealstreetasia.com/tag/vinacapital/">VinaCapital</a> expects to close private equity deals worth over $100 million in the next few months.</article>

Asset management firm <a class="tinymce-colortext" style="color: #000080;" href="https://www.dealstreetasia.com/tag/vinacapital/">VinaCapital</a> expects to close private equity deals worth over $100 million in the next few months.
This aggregate deployment would significantly exceed the fund’s cash balance, its <a class="tinymce-colortext" style="color: #000080;" href="https://www.dealstreetasia.com/tag/vietnam-opportunity-fund/">Vietnam Opportunity Fund </a>(VOF) said in its annual report. The diversified fund plans to use profit from its listed equities portfolio to facilitate investments into private opportunities, which could potentially generate greater returns.
VinaCapital’s chief investment officer Andy Ho had earlier told this portal that the fund manager had parcelled out $200 million for its private equity plan, and had $120 million in cash.
VOF will continue to scout for companies valued between $100 million and $500 million to make investments in the range of $10-50 million.
It said it had deployed over $40 million into privately negotiated deals into listed businesses such as Coteccons Construction, Khang Dien House and Novaland, at the end of 2016. During the first half of 2017, another portion of $48.5 million was funnelled into companies such as budget airline <a class="tinymce-colortext" style="color: #000080;" href="https://www.dealstreetasia.com/tag/vietjet/">VietJet</a>, stationery manufacturer Thien Long, ceramic product company Viglacera and steelmaker Hoa Phat Group.
“It was prudent to hold back sufficient cash to enable immediate deployment as and when such attractive deals were ready to close. As the investment manager points out, we are very disciplined in this area as we seek superior returns and an appropriate level of reward for placing capital in illiquid investments,” Steven Bates, the independent chairman of VOF, explained the fund’s strategy on private opportunities.
However, the fund’s report also shows that it is taking much longer to close private equity deals, about 5-10 months compared to 3-6 months as before. In addition, valuations have increased in the past 12 months due to higher expectation by the sellers.
Yet, Vietnam has not been part of the mainstream investment universe, so there should be increasing international interest from both direct and portfolio investors, Bates said.
VinaCapital has recently appointed London-based Frostrow Capital LLP to promote VOF to UK investors and other stakeholders.
The $1.8-billion asset management company also has a partnership with <a class="tinymce-colortext" style="color: #000080;" href="https://www.dealstreetasia.com/tag/draper-fisher-jurvetson/">Draper Fisher Jurvetson</a> in venture capital, and <a class="tinymce-colortext" style="color: #000080;" href="https://www.dealstreetasia.com/tag/warburg-pincus/">Warburg Pincus</a> in hospitality and lodging.
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VinaCapital's VOF will continue to scout for companies valued between $100 million and $500 million to make investments in the range of $10-50 million.

Vietnam's VinaCapital to deploy over $100m in PE deals in coming months

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